Downtown Lofts Project Stalls as Developer Cites Grant Delays; Abilene Commission Opts to Wait
The Abilene City Commission received a status update on the downtown lofts development agreement, with city staff requesting direction after the developer missed a contractual construction start deadline and did not respond to repeated requests for a meeting.
Staff said the development agreement was executed in April 2024 and set a construction commencement deadline of July 1, 2024, which has passed. According to staff, the developer submitted a letter explaining circumstances affecting the project and requesting an amendment with a revised milestone-based schedule, but subsequent city requests for a meeting and additional information — including follow-up correspondence in June — went unanswered.
The developer, who identified himself as the project's developer, addressed the commission and said his lack of recent updates reflected "a lack of new information to report," not a lack of commitment. He said the redevelopment relies on a stack of tax incentives, referencing RHID, CDBG, HPTC, and KHITC financing tools, and that his architect is currently preparing bid plans for Dickinson County, which is acting as the official applicant and sponsor of a Community Development Block Grant.
The developer said initial bids came back about $1 million higher than the architect's estimate and were not feasible even with the incentives. He said the CDBG process has involved lengthy back-and-forth between the county and the state, delaying the timeline. He agreed an amendment to the development agreement is necessary but said he was not yet comfortable committing to a specific timeline.
Commissioners voiced support for the project, describing it as beneficial to downtown, and directed staff to continue working administratively rather than pursuing contractual remedies. Staff said they would "put this on the shelf" until the developer reaches back out, noting the developer's letter stated a willingness to routinely update the city on CDBG progress.
Source: City Commission Regular Meeting